Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
475.0000 RESALE CERTIFICATES—Regulation 1668
475.0168.180 Purchase Order Supported by Blanket Resale Certificate. A customer issued a purchase order to a printer for the purchase of brochures. The customer attached a resale certificate to the purchase order indicating that four-digit purchase order numbers should be considered nontaxable. In addition, the bottom-line tax portion of the purchase order read ".00" for sales tax amount to be charged.
Subdivision (b)(4) of Regulation 1668 provides that if a purchaser wishes to designate on each purchase order that the property is for resale, the seller should obtain a qualified resale certificate, i.e., one that states: See "purchase order" in the space provided for a description of the property to be purchased. Each purchase order must then specify whether the property covered by the purchase order is purchased for resale or whether tax applies to the orders. If the purchase order does not so specify, it will be assumed that the property covered by the purchase order was purchased for use and not for resale.
In this case, the purchase order did not specify whether the property covered by the purchase order was purchased for resale or whether tax applied to the order. Therefore, the sale is not covered by the resale certificate and is subject to tax unless the printer establishes that the purchaser resold the brochures along with its products. 7/11/96.